Getting a loan problem

anthonyevans

Hi All,

I'm attempting to get a personal loan to purchase a car, circa £13k.

I currently have a lease car, paying £300 a month due to be handed back in 800 miles.

I have been rejected by 2 companies by applying online Alliance & Leicester (my bank!) and M&S. Without further damaging my credit rating I'm at a loss on how to apply and suceed in getting a loan!

Whilst I know I could check my credit rating with Experian etc. I haven't done so yet as it won't solve the problem!?

My personal details:-

1. Full time employment £41,500 per annum paid direct to bank account
2. Rented property - privately £700 per annum
3. 3 credit cards. Owe £2000 on 1
4. With bank for 21 years with £1000 overdraft (only dip into it at end of month for max 5 days or so)

Really appreciate your help/advice.

Thanks,

Anthony

CLAPTON

you need to check what your credit files say

using your OD every month is bad news as it usually means that the person is struggling or bad with money

BugsyBrowne

CLAPTON wrote: »

you need to check what your credit files say

using your OD every month is bad news as it usually means that the person is struggling or bad with money

I personally don't touch my overdraft as its only £250 but to say someone who is going into their overdraft could be a sign of struggling sorry I don't buy that.
My OH is always in her overdraft and always have been and she has never been turned down for anything.
Also a friend always tell me he is in is overdraft every week but lenders still throw cards at him left right and centre.
Another one of these hear say myths going round the forum I see.

CLAPTON

star-fire wrote: »

I personally don't touch my overdraft as its only £250 but to say someone who is going into their overdraft could be a sign of struggling sorry I don't buy that.
My OH is always in her overdraft and always have been and she has never been turned down for anything.
Also a friend always tell me he is in is overdraft every week but lenders still throw cards at him left right and centre.
Another one of these hear say myths going round the forum I see.

one of the wonders of the financial institution as reported on the forums is that all sorts of odd things happen... bankrupts get offered main stream credit cards; people with good credit history are refused.

nevertheless, using a OD each month is a good indication of some-one struggling or bad a managing their money

why is your OH in an OD every month?

CashRequired

star-fire wrote: »

I personally don't touch my overdraft as its only £250 but to say someone who is going into their overdraft could be a sign of struggling sorry I don't buy that.
My OH is always in her overdraft and always have been and she has never been turned down for anything.
Also a friend always tell me he is in is overdraft every week but lenders still throw cards at him left right and centre.
Another one of these hear say myths going round the forum I see.

Agreed. I've never heard anyone turned down with "sorry your always in your overdraft so your bad with money". Providing you don't miss payments on credit cards/loans/overdraft charges its probably all good.

To op, what other debts do you have, if any? what amounts are on the cards? have you ever not been able to pay on time etc?

CLAPTON

CashRequired wrote: »

Agreed. I've never heard anyone turned down with "sorry your always in your overdraft so your bad with money". Providing you don't miss payments on credit cards/loans/overdraft charges its probably all good.

To op, what other debts do you have, if any? what amounts are on the cards? have you ever not been able to pay on time etc?

just as a matter of interest, if some-one is always in their overdraft and applies for a loan, how you you expect them to find any spare money to repay it (excluding consolidation loans).

BugsyBrowne

CLAPTON wrote: »

one of the wonders of the financial institution as reported on the forums is that all sorts of odd things happen... bankrupts get offered main stream credit cards; people with good credit history are refused.

nevertheless, using a OD each month is a good indication of some-one struggling or bad a managing their money

why is your OH in an OD every month?

Because she likes to shop bless her.

BugsyBrowne

CLAPTON wrote: »

just as a matter of interest, if some-one is always in their overdraft and applies for a loan, how you you expect them to find any spare money to repay it (excluding consolidation loans).

As long as you pay back your OD every month or week the banks are not going to refuse you a loan for this.
Missed/late payments yes,going into an overdraft No way.

CashRequired

CLAPTON wrote: »

just as a matter of interest, if some-one is always in their overdraft and applies for a loan, how you you expect them to find any spare money to repay it (excluding consolidation loans).

Assuming someone is working and has enough money going into the account to cover it, i don't see the problem. I know living in your OD isn't ideal, but at the same time i've know plenty of people in OD's all the time get loans. In fact years ago i was in my OD all the time, applied for a loan in the bank. Sat down with them, told them my income/outgoings and they didn't question my overdraft facility. They gave me an overdraft at the end of the day, as long as they get the money for the charges they don't care, more money for them. I'll use my overdraft how i like its nothing to do with them.

As long as you have the money coming in and have the "available credit" its going to get paid.

CLAPTON

CashRequired wrote: »

Assuming someone is working and has enough money going into the account to cover it, i don't see the problem. I know living in your OD isn't ideal, but at the same time i've know plenty of people in OD's all the time get loans. In fact years ago i was in my OD all the time, applied for a loan in the bank. Sat down with them, told them my income/outgoings and they didn't question my overdraft facility. They gave me an overdraft at the end of the day, as long as they get the money for the charges they don't care, more money for them. I'll use my overdraft how i like its nothing to do with them.

As long as you have the money coming in and have the "available credit" its going to get paid.

so lets see

each and every month a person has NO spare cash at the end of the month (i.e. they use their OD)

they apply for a loan that (say) requires repyments of £200 per month

only a mad bank would lend on that basis

now of course we know there certainly were mad banks but these are fewer nowadays.

BugsyBrowne

CLAPTON wrote: »

so lets see

each and every month a person has NO spare cash at the end of the month (i.e. they use their OD)

they apply for a loan that (say) requires repyments of £200 per month

only a mad bank would lend on that basis

now of course we know there certainly were mad banks but these are fewer nowadays.

I understand where your trying to come from Clapton,but just don't buy it and never will.